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Club announce $1.65M loss

Dannyz
Dannyz
in Melbourne Demons

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So net legal costs with a $1.65mill operating loss come to $925,680. Seems like a sub $1mill operating loss might have been very avoidable...

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    Payout to Gus of $3.1m and legal fees of $900k put a huge dent in the results. 

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    Slightly misleading (or more than that) with Angus’ payout having to be written off this FY.

    It would be about a fifth of the $3.1m this year?

    Keeping us in the black in real terms.

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    Strange thing with the Gus write down is that it will increase profit in the out years as we forced to operate under a reduced salary cap.

    A nice financial up but terrible from a team structuring viewpoint

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    I'm surprised we couldn't amortise Gus's salary over the years of his contract. Maybe we decided to eat it all this year? Or would it not have been an option?

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    9 minutes ago, Dr. Gonzo said:

    I'm surprised we couldn't amortise Gus's salary over the years of his contract. Maybe we decided to eat it all this year? Or would it not have been an option?

    I think that the ‘accounting’ side, and the ‘real FY payment’ side, and the ‘amorphous AFL rules that will be reversed in 2 years time’ are confusing the issue here.

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    5 hours ago, BDA said:

    Payout to Gus of $3.1m and legal fees of $900k put a huge dent in the results. 

    So Collingwood pole-axing Gus won them a premiership and put us into negative finances.

    And people wonder why I hate that club so much.

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    11 hours ago, Dr. Gonzo said:

    Legal costs and paying out Brayshaw turned it from a 1.6m profit to a 1.6m loss?

    Is there no insurance cover for a situation like Brayshaw’s?

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    I am ASTOUNDED that if your number one primary job still doesn't cater for workplace injuries sustained during your time at work, this must be addressed surely?? I reckon the Afl and that piece of !#$* should be sued! The AFL failed in their duty of care to protect  and so did that !@#$.

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    11 hours ago, Dr. Gonzo said:

    I'm surprised we couldn't amortise Gus's salary over the years of his contract. Maybe we decided to eat it all this year? Or would it not have been an option?

    Exactly.  Makes things look better on the books in coming years, but why would a total payment be made today, when his salary would have been paid over the next 4-5 years?

    Perhaps he accepted a lesser amount to get the money upfront?

    It is still ridiculous for the club to claim it is an "abnormal" amount.

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    1 hour ago, george_on_the_outer said:

    Exactly.  Makes things look better on the books in coming years, but why would a total payment be made today, when his salary would have been paid over the next 4-5 years?

    I'm confused, does it though?  If Brayshaw's payout means that we have the full TPP available for the rest of the players, it's not going to look better in coming years, it will just look normal again? 

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    1 minute ago, Ouch! said:

    I'm confused, does it though?  If Brayshaw's payout means that we have the full TPP available for the rest of the players, it's not going to look better in coming years, it will just look normal again? 

     

    13 hours ago, rpfc said:

    I think that the ‘accounting’ side, and the ‘real FY payment’ side, and the ‘amorphous AFL rules that will be reversed in 2 years time’ are confusing the issue here.

    Look Here Reaction GIF by Paul McCartney

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    Just now, Ouch! said:

    I'm confused, does it though?  If Brayshaw's payout means that we have the full TPP available for the rest of the players, it's not going to look better in coming years, it will just look normal again? 

    TPP is separate to Financial statements. The AFL have already told us what we have to carry in the TPP.  If all the financial liability is brought to account this year as a big loss, then in subsequent years the financials will look better than if amortised.

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    2 hours ago, george_on_the_outer said:

    Exactly.  Makes things look better on the books in coming years, but why would a total payment be made today, when his salary would have been paid over the next 4-5 years?

    Perhaps he accepted a lesser amount to get the money upfront?

    It is still ridiculous for the club to claim it is an "abnormal" amount.

    The cat sat on my head at 3.00am so to get back to sleep I read the mfc financial report.  I think somewhere in there is a note that stated that the full Brayshaw payment was included in this statement as per Australian Accounting Standards. (sounds a tad Monty Python).

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    I’d imagine having one of the biggest, if not the biggest, membership drop off in the AFL probably hasn’t helped matters either.

    Gate receipts also down $1.7 million. I wonder how much of that was not hosting Kings B’Day and Anzac Eve and how much of that were those deplorable Saturday night crowds late in the year.

    Edited by Bring-Back-Powell

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    3 hours ago, Fritta and Turner said:

    The cat sat on my head at 3.00am so to get back to sleep I read the mfc financial report.  I think somewhere in there is a note that stated that the full Brayshaw payment was included in this statement as per Australian Accounting Standards. (sounds a tad Monty Python).

    Yep, from an accounting perspective it makes sense that the full amount is included in our accounts. As soon as the financial settlement was reached, regardless of when the payments were made, would be the moment the liability would appear on our books.

    An operating profit is a good result considering our mixed performances and drop off in the second half of the season not to mention that KB and Anzac Eve were both away games. Bodes well for 2025 where I think we will bounce back strongly.

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    2 hours ago, Bring-Back-Powell said:

    I’d imagine having one of the biggest, if not the biggest, membership drop off in the AFL probably hasn’t helped matters either.

    Gate receipts also down $1.7 million. I wonder how much of that was not hosting Kings B’Day and Anzac Eve and how much of that were those deplorable Saturday night crowds late in the year.

    Don’t discount that our style of play was rather boring compared with other sides. And the AFL is punishing us for that with the 2025 FIXture.

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    • Like 2
    9 hours ago, Fritta and Turner said:

    The cat sat on my head at 3.00am so to get back to sleep I read the mfc financial report.  I think somewhere in there is a note that stated that the full Brayshaw payment was included in this statement as per Australian Accounting Standards. (sounds a tad Monty Python).

    Here is the actual extract from the Directors' Report (I hope the cat's OK?):

     

    $3.1m expense (including on-costs) relating to settlement of Angus Brayshaw’s 2024 – 2028 playing contract following his medical retirement. Whilst payments will be split across multiple financial years, the total cost (including on-costs) is required to be recorded as an expense in 2024 in accordance with Australian Accounting Standards; 

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    5 hours ago, chookrat said:

    Yep, from an accounting perspective it makes sense that the full amount is included in our accounts. As soon as the financial settlement was reached, regardless of when the payments were made, would be the moment the liability would appear on our books.

    An operating profit is a good result considering our mixed performances and drop off in the second half of the season not to mention that KB and Anzac Eve were both away games. Bodes well for 2025 where I think we will bounce back strongly.

    Operating Profits:

     

    2022 $3.528

    2023 $2.164

    2024 $ 1.694

     

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    9 hours ago, Hawk the Demon said:

    Here is the actual extract from the Directors' Report (I hope the cat's OK?):

     

    $3.1m expense (including on-costs) relating to settlement of Angus Brayshaw’s 2024 – 2028 playing contract following his medical retirement. Whilst payments will be split across multiple financial years, the total cost (including on-costs) is required to be recorded as an expense in 2024 in accordance with Australian Accounting Standards; 

    Apart from a lift in current payables (i.e. due within the next twelve months), there is an amount of $1,320,000 in non-current payables - labelled player contract settlement - which looks like the amount payable after 1 November 2025.

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